1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market. Harnessing the power of Bloomberg Data. 4 00:00:16,480 --> 00:00:18,439 Speaker 1: Let's take a look at some stocks on the move today. 5 00:00:18,520 --> 00:00:21,480 Speaker 1: I'm Nathan Hager, joined by Bloomberg's Dan Curtis. On a 6 00:00:21,560 --> 00:00:24,239 Speaker 1: morning we were seeing the futures turn around now Dan, 7 00:00:24,360 --> 00:00:28,600 Speaker 1: but Amazon continues to fall on big plans, and I 8 00:00:28,680 --> 00:00:30,560 Speaker 1: mean big for AI spending. 9 00:00:30,600 --> 00:00:34,159 Speaker 3: Good morning, Good morning. Two hundred billion dollars. That's all 10 00:00:34,159 --> 00:00:35,680 Speaker 3: I have in my notes for the morning, but I 11 00:00:35,680 --> 00:00:37,600 Speaker 3: think it'll take us through the entire All you need, 12 00:00:37,800 --> 00:00:39,640 Speaker 3: that's all you need. I mean, I will take it. 13 00:00:40,200 --> 00:00:42,680 Speaker 3: Two hundred billion dollars in capex. That's the big number 14 00:00:42,680 --> 00:00:46,880 Speaker 3: coming out of the Amazon results after hours. Well, that's 15 00:00:46,920 --> 00:00:48,479 Speaker 3: how much they are going to be spending this year 16 00:00:48,520 --> 00:00:50,879 Speaker 3: on AI. We've been talking about this all week, all 17 00:00:50,920 --> 00:00:53,479 Speaker 3: these hyperscal are spending a lot of money. Amazon ending 18 00:00:53,560 --> 00:00:56,600 Speaker 3: Friday or ending the week with a big number, biggest 19 00:00:56,600 --> 00:00:59,080 Speaker 3: one so far. The estimate was one hundred and fifty 20 00:00:59,280 --> 00:01:02,320 Speaker 3: billion dollars, so a lot more spending than was expected. 21 00:01:02,880 --> 00:01:07,240 Speaker 3: Money will go mainly towards the AI play as all 22 00:01:07,280 --> 00:01:12,279 Speaker 3: these companies are spending and that's coming with operating income 23 00:01:12,319 --> 00:01:14,760 Speaker 3: guidance for the year. The high end of that was 24 00:01:14,800 --> 00:01:17,479 Speaker 3: twenty one point five billion dollars. That was below Wall 25 00:01:17,520 --> 00:01:20,040 Speaker 3: Street estimate. So this extra spending is going to be 26 00:01:20,120 --> 00:01:22,760 Speaker 3: hitting the bottom line a little bit. Markets are not 27 00:01:22,880 --> 00:01:26,240 Speaker 3: appreciating that fact. Seven percent down in the pre market 28 00:01:26,319 --> 00:01:29,080 Speaker 3: right now. As for the fourth quarter, the top line beat. 29 00:01:29,440 --> 00:01:34,680 Speaker 3: Earnings missed. Strong results from the AI play Amazon Web Services. 30 00:01:34,680 --> 00:01:38,200 Speaker 3: That's the AI division, twenty four percent growth, largest growth 31 00:01:38,200 --> 00:01:40,800 Speaker 3: in three years. It also has a backlog of nearly 32 00:01:40,800 --> 00:01:43,119 Speaker 3: two hundred and fifty billion dollars, so that's business down 33 00:01:43,160 --> 00:01:45,520 Speaker 3: the pipeline. So some good news on the AI, but 34 00:01:45,600 --> 00:01:48,120 Speaker 3: they are spending a lot of money to build it. 35 00:01:48,160 --> 00:01:51,560 Speaker 1: Out and the earnings continue. This morning, we're just watching 36 00:01:51,600 --> 00:01:53,360 Speaker 1: results cross from under Armour. 37 00:01:54,040 --> 00:01:57,040 Speaker 3: That's right, these crossing the crossing the terminal right now. 38 00:01:57,120 --> 00:02:00,200 Speaker 3: Shares are up of under Armour about eight percent in 39 00:02:00,320 --> 00:02:03,960 Speaker 3: pre market. Overall, it looks like a beat. Third quarter 40 00:02:04,120 --> 00:02:07,240 Speaker 3: earnings came in positive at nine cents. Wall Street was 41 00:02:07,280 --> 00:02:10,160 Speaker 3: expecting a loss for the quarter. That's a positive. The 42 00:02:10,320 --> 00:02:13,520 Speaker 3: estimates also coming out positively, so that's getting some bullish 43 00:02:13,560 --> 00:02:17,120 Speaker 3: optimism in the stock this morning. Now five percent whipsawing 44 00:02:17,120 --> 00:02:18,560 Speaker 3: a bit, but in the green. 45 00:02:18,840 --> 00:02:22,200 Speaker 1: And we did get results as well from Stilantis. These 46 00:02:22,240 --> 00:02:26,880 Speaker 1: are not being taken kindly as the pullback from EV's continues. 47 00:02:27,480 --> 00:02:30,000 Speaker 3: That's right, and it's going to cost them twenty six 48 00:02:30,200 --> 00:02:33,960 Speaker 3: billion dollars. That's the charges that they announced in that 49 00:02:34,040 --> 00:02:39,160 Speaker 3: pullback from evs Stilantis. They're cancelingv projects, they're reducing production. 50 00:02:39,440 --> 00:02:43,160 Speaker 3: They have to still compensate some suppliers because there's contracts outstanding. 51 00:02:43,440 --> 00:02:46,359 Speaker 3: The company has stopped making several plug in models. It's 52 00:02:46,360 --> 00:02:49,440 Speaker 3: struggling with sales and struggling with the high cost of 53 00:02:49,480 --> 00:02:52,560 Speaker 3: the EV market. Company got a new CEO last year, 54 00:02:52,639 --> 00:02:55,200 Speaker 3: so this is part of that turnaround. Previous CEO was 55 00:02:55,240 --> 00:02:57,359 Speaker 3: all in on EV's. He was looking for fully EV 56 00:02:57,480 --> 00:03:00,519 Speaker 3: in Europe by twenty thirty. So this is just the 57 00:03:00,560 --> 00:03:03,720 Speaker 3: copany trying to change course under new leadership. It follows 58 00:03:03,720 --> 00:03:05,679 Speaker 3: in the wake of Ford, which announced nineteen and a 59 00:03:05,720 --> 00:03:08,720 Speaker 3: half billion dollars in charges in December, and GM logged 60 00:03:08,840 --> 00:03:11,560 Speaker 3: seven point six billion dollars in write down so far 61 00:03:11,639 --> 00:03:15,760 Speaker 3: around this trade that stocked down twenty six percent in 62 00:03:15,840 --> 00:03:18,040 Speaker 3: the pre market now, so really taking it on the chin. 63 00:03:18,160 --> 00:03:18,440 Speaker 2: Wow. 64 00:03:18,480 --> 00:03:21,680 Speaker 1: And finally let's talk about Reddit. Looks like their earnings 65 00:03:21,720 --> 00:03:23,200 Speaker 1: are getting received pretty well. 66 00:03:23,880 --> 00:03:25,839 Speaker 3: Yeah, I was reading about this on the forum. They're 67 00:03:25,919 --> 00:03:28,959 Speaker 3: up eleven percent. The current quarter sales are projected to 68 00:03:29,000 --> 00:03:32,080 Speaker 3: be around six hundred million dollars. That topped estimates fourth 69 00:03:32,120 --> 00:03:35,200 Speaker 3: quarter top and bottom line beats. That was driven by 70 00:03:35,360 --> 00:03:39,520 Speaker 3: sixty seven percent growth in US sales nearly eighty percent 71 00:03:39,600 --> 00:03:42,760 Speaker 3: revenue growth internationally. This is all AD driven that he's 72 00:03:42,800 --> 00:03:45,400 Speaker 3: been able to expand that AD business, so lots of 73 00:03:45,440 --> 00:03:48,280 Speaker 3: growth both domestically and internationally. 74 00:03:49,280 --> 00:03:53,280 Speaker 2: This Stock Movers report from Bloomberg Radio. Check back with 75 00:03:53,360 --> 00:03:55,920 Speaker 2: us throughout the day for the latest roundup of companies 76 00:03:56,000 --> 00:03:59,120 Speaker 2: making news on Wall Street and for the latest market 77 00:03:59,160 --> 00:04:03,600 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 78 00:04:03,720 --> 00:04:07,200 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 79 00:04:07,280 --> 00:04:08,760 Speaker 2: the Bloomberg Business app.